Billionaire investor Warren Buffett once said: “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Therefore, I’ve been looking for shares to buy now because I think value investing has a lot of life in it.
Interesting situations
Meanwhile, the stock market volatility over the past few days has thrown up some interesting situations. And I reckon most retail investors like me tend to take a contrarian approach to the markets.
That can be a good idea because it’s difficult to achieve decent returns when stocks are over-valued. However, focusing on valuation alone doesn’t guarantee success. All shares and business come with risks as well as positive potential — even cheap-looking ones.
Nevertheless, the current bout of market weakness could be an opportunity. For example, I like the FTSE 100‘s Burberry (LSE: BRBY), the global luxury goods manufacturer, retailer and wholesaler.
Change can invigorate businesses
Last week, the company said its chief operating and financial officer will step down in April 2023. And today it announced the appointment of a new chief creative officer. Therefore, two senior members of the management team are changing.
Is that a worrying development? I don’t think so. The search is on for the next chief operating and financial officer. But change at the top of an organisation can often lead to renewed drive and ambition in company boardrooms.
I reckon Burberry has a good chance of making decent operational progress in the years ahead. And that’s why I recently added some of the shares to my diversified, long-term-focused portfolio. Although, as with all shares, positive outcomes are not certain.
Another FTSE 100 company I’m keen on is Airtel Africa, the provider of telecommunications and mobile money services across the African continent. In July, the company posted a decent first-quarter results report trumpeting “double-digit revenue growth, margin and earnings progression and further strengthening of the balance sheet.”
Potential for growth ahead
Looking ahead, chief executive Segun Ogunsanya said the company expects growth in the near-term “ahead of the market”. And in the longer term, there are opportunities for “sustainable profitable growth”.
Meanwhile, in the FTSE 250, I reckon the prospects for Greggs look appealing. In August, the food-on-the-go retailer delivered a robust set of half-year results. And I’m optimistic the firm’s strong brand and value customer offering will help it trade well ahead. The economic times are tough for many people. But my guess is regular trip to Greggs will be among the last habits they stop.
On top of that, Greggs has a vibrant expansion programme in full swing. So, I see its prospects as attractive across all time frames. Of course, despite my optimism I could be wrong. And Greggs could struggle to make progress in today’s harsh economic environment. Nevertheless, I bought some of the shares recently for my long-term portfolio.